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2014 (10) TMI 475 - AT - Service TaxDemand of interest - Delay in payment of tax - Held that:- question of payment of tax is a simple fact. Tax can be paid either in cash or by debit in the CENVAT credit account or by way of both. If the tax is paid through the CENVAT credit, it is the date of debit in the CENVAT account which is the date of payment of tax. Merely, because the credit is available in the books of accounts, it does not mean that the tax has been paid. Therefore, the liability to pay interest has to be computed from the due date of payment of tax to the actual date of payment. If viewed from this perspective, in the present case, inasmuch as the tax has been paid only on 15/02/2007 by debit in the CENVAT account, whereas the due dates for payment of tax were 05/09/2006 (sic) and 05/02/2007, there are delays of 102 days and 10 days in payment of tax and for these delays, the respondent is certainly liable to pay interest. Therefore, the impugned order is set aside to the extent of dropping of interest liability and we hold that the respondent is liable to pay interest for the above period of 102 days and 10 days respectively as proposed in the show cause notice - Decided in favour of Revenue.
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